The impact of surging demand for biofuels on feed prices is a key factor behind the downturn of the American pork industry, a US expert told the Pan Pacific Pork conference at the Gold Coast last week.
Dr Dean Boyd from the Hanor Family of Companies in the US told of the grave impacts world biofuels policy, along with climate change, is having on the global pork industry.
"Feed costs are doubling and it is costing US$122 to feed a single pig," Mr Boyd said.
"By 2009, 40pc of the American corn crop will be mandated to the biofuel market."
The demand for crops to be used as fuel is driving up feed costs for pork producers and pushing the smaller operators out of the industry.
Dr Boyd believes while Australia is yet to suffer quite as harshly as the American pork industry, the global growers are "all in this together" and need to tackle it as a global problem.
"Australians need to lobby hard to keep imports to a minimum and they need to see a price increase in the next 12-18 months," he said.
Dr Boyd also predicted in the next 10 years the world would see a 10pc decrease in the pork industry.
He also noted that producers will need the ability to mitigate loss and have a strong financial backing to continue in the future.
However, the PPP conference was not all gloom and doom for attendees.
Speakers Chenjun Pan from Rabobank in China and Jon Radcliff from the UK both spoke of the opportunities for Australian producers to capitalise on the growing Chinese market.
Ms Pan said that Australia's stringent slaughter and health restrictions put them in good stead for export opportunities with China.
Despite the need for food in the fastest-growing country in the world, Australian producers would have to overcome difficult market access, competition from the US and a strong Australian dollar to gain a strong hold in the Chinese consumer industry.
Dr Jon Radcliff also indicated that these issues would be overcome, due to the giant increase in the demand for protein products.
"By 2030 an extra 320 million tonnes of protein will be needed to supply the world market," Dr Ratcliff said.